H&S Projection
H&S formation occurred back in late 2016, and it was initially confirmed when it broke below the neckline on 12/21/2016. Inevitably though, the price has gone back up to retest that neckline at 18.80, and got rejected “H&S Neckline rejection” on 2/8/2017. Actually, it’s the retest & rejection phase where the H&S formation’s power is truly displayed; ever since the rejection, Twitter (TWTR) has been tanking pretty hard down about -40% since the highs at $25 on 10/5/2016. Quiet of ‘tankage’ we’ve seen here, and I think the selling pressure (in the intermediate to primary-term) may continue through out this year until we hit “H&S Projected Target @ $10.”
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TWTR Daily-Chart
Ultimate Bottom
I believe the ultimate bottom for Twitter is at $10 per share, which I came to this conclusion on my independent research and H&S Projection analysis as I have demonstrated on the chart above. I will be commencing to accumulate my long-term investment positions on Twitter at the vicinity of $10ish when or if we get there. Upon entry, I will be looking to hold about 3, 5, & 10 years adding to this position as it starts to move to the upside (I will be using my Active Investing Strategy for this position). I will be buying underlying securities (common shares, no options) as it could take months before it actually finds a traction to the upside. I can’t say that Twitter is going to be next Facebook (FB), but I do believe that (once Twitter finds a way to be lucrative) Twitter can become one of the leaders in the internet stocks category.
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TWTR Weekly-Chart
Tough Road
It’s not going to be a easy road, but it never is in trading & investing. Bulls got work cut out for this one as the bears have grown immensely since the ATH at 74ish (if stock hits $10, that would be whopping -85% decline since the ATH). If or when the stock hits $10ish, it won’t be the ‘V’ shape reversal (if it does… sing HALLELUJAH!), it may even go down lower and starts to consolidate, which, the process could take months–maybe a year before it actually reverses back up. But I do NOT believe this company is going bankrupt or cease to exist, I believe Twitter is still very much valuable today for many businesses and individuals; and in due time, it will be reflected in price.
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TWTR Daily-Chart
